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1 (EPR) Analysis of in the EU and development of guiding principles for their functioning In association with: ACR+ SITA LUNCH DEBATE 25 September 2014

2 Content 1. Objectives and 2. General overview of in the EU 3. by 2

3 3

4 Objectives DESCRIBE, COMPARE AND ANALYSE DIFFERENT 1 TYPES OF EPR SYSTEMS OPERATING IN THE EU IDENTIFY 2 IDENTIFY NECESSARY CONDITIONS AND BEST NECESSARY CONDITIONS AND PRACTICES FOR THE FUNCTIONNING OF EPR BEST PRACTICES FOR THE FUNCTIONNING SYSTEMS OF EPR SYSTEMS 3 PROPOSE PROPOSE AND ASSESS OPTIONS TO PROMOTE AND ASSESS OPTIONS TO PROMOTE AN OPTIMAL AN OPTIMAL USE USE OF OF EPR SYSTEMS ACROSS SYSTEMS THE EUACROSS THE EU 4

9 Performance of Analysing performance of : a lack of evidence to identify the best organisation Severe lack of comparable information available: lack of transparency on economic indicators, non aligned methods for reporting technical performance Great discrepancies in performance indicators at the EU-28 level Many aspects, independent from EPR organisation, interfere with technical and economic performance: population density, historical development of waste collection and treatment infrastructure, awareness and willingness of the public to participate, complementary economic or fiscal tools 9

10 by EPR schemes CSI Audit - Our Offer

11 Allocation of responsibilities among stakeholders Four main systems 11

14 Cost Coverage Most cover (partly or fully) the net costs for the management of waste that has been collected separately, as well as administrative, reporting and communication costs relative to the operation of collective schemes In most cases for battery waste, the financial responsibility assumed by battery producers covers 100% of collection and treatment costs. In five packaging schemes studied, 100% of net costs for separately collected waste are covered (except for France and UK) For WEEE, PROs cover 100% of transportation (pick-up from public amenity centres) and treatment costs. However only in three out of seven cases, PROs also cover 100% of the collection costs, through reimbursement to local public authorities. 14

15 When costs covered do not fall within the operational responsibility of producers, a standard, or reference cost, is used to estimate the amounts to be covered, and to determine how much producers should contribute either by: Reimbursing local authorities - A reference cost is used by the Belgian PRO for portable batteries to reimburse local public authorities, based on a reference civic amenity site and by the Belgian EPR scheme for oils, where the reference formula takes into account average costs. - In some cases, the reference costs are related to optimised net costs. This is illustrated through France s packaging EPR scheme, where the reference costs are evaluated based on an optimal functioning of the collection and sorting operations. Financial incentives - In the UK, where producers comply by buying Packaging Recovery Notes (PRN) from recyclers, it is estimated that the producer fee covers only 10% of the total cost of the system CSI Audit - Our Offer

16 Some may cover: Costs for non-separately collected waste Costs for public information and awareness raising Costs related to waste prevention actions Costs for litter prevention and management Costs related to the enforcement and surveillance of the EPR system Examples: In France, only 75% of collection and treatment costs are covered, however, these include non-separately collected packaging waste remaining in the residual fraction. In Portugal, 5% of the PRO s budget must be dedicated to communication and awareness raising activities and 3% to research and development. In Austria, PROs have to use 3 of their annual income to support waste prevention projects CSI Audit - Our Offer

17 : towards guiding principles Objectives and Main issues and guidance Guiding principle #3: The design and implementation of an EPR scheme should at least ensure the coverage of the full net costs related to the separate collection and treatment of the end-of-life products. EPR scheme should cover the following net costs related to the end of life of products: Costs for establishing a separate waste collection system Collection, transport and treatment costs for separately collected waste Administrative costs, i.e. costs linked to the running of PROs Costs for public communication and awareness-raising (on waste prevention, litter reduction, separate collection, etc.) as long as producers have a say in their design and implementation Costs for the appropriate surveillance of the system (including auditing and measures against free riders Subtract revenues from recycled material sales. 17

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